Mar 23
Hungary: MNB keeps rates on hold, but stands ready to hike
The Hungarian central bank (MNB) today decided to keep its key policy rate unchanged at 9.50% - in line with consensus and our expectation. Hence, the MNB Monetary Council did not think that the resignation of Prime Minister Gyurcsany this weekend should trigger a rate hike. The Hungarian central bank is undoubtedly in a very challenging situation. The economy is contracting significantly and GDP is likely to drop by more than 5% this year, which will reduce inflationary pressures. On the
